The president of a prairie farmer-based coalition vying to take ownership of more than 12,000 government-owned grain rail cars says Ottawa appears to be on the cusp of making a favourable decision, perhaps as early as spring.
Saskatchewan farmer Sinclair Harrison, president of the Farmer Rail Car Coalition, said Jan. 22 he is confident the new Liberal government is poised to approve the deal. He said a transfer of the cars to a non-profit farmer-run company is possible by Aug. 1.
He led a four-day lobby effort in Ottawa last week that included a meeting with new transport minister Tony Valeri, trade minister Jim Peterson, senior bureaucrats and operatives of the new Paul Martin government.
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“The pressure is on to do something before the election (expected to be called in April),” Harrison said in an interview. “I think we’re in a better position than we’ve ever been. Naturally, it’s a political decision but I sense a real desire to deal with this. It’s been eight years. It’s frustrating to have it last that long.”
The coalition, with members that range from the Saskatchewan Association of Rural Municipalities and the National Farmers Union to pulse growers’ associations, is proposing that Ottawa turn over its 12,500 grain cars for $1.
A non-profit company would lease them to carry the prairie crop to customers. Leases would be lower than market rates, saving farmers money, and income would be used to upgrade and maintain the cars, many of which are wearing out.
“FRCC ownership of the cars would save farmers a minimum of $40 million annually in maintenance costs on the cars,” said a letter that Harrison left with everyone he met last week. “Over time, the FRCC’s plan has the potential to save Canadians $1 billion.”
The overall savings would come in a more efficient grain transportation system and the end of Ottawa’s potential obligation to replace the cars, said the coalition.
Ottawa first proposed selling its grain car fleet in 1996.
Since then, the farmer coalition has been promoting its ownership and the railways have been arguing that the cars should be auctioned.
In Ottawa, there has been support from some ministers such as Saskatchewan’s Ralph Goodale but skepticism from others, such as former transport minister David Collenette and senior officials in the finance department, who have been loath to give away what they consider a book asset worth several hundred million dollars.
Goodale now is finance minister, agriculture minister Bob Speller and Canadian Wheat Board minister Reg Alcock say they are onside and in two past meetings, prime minister Paul Martin has favoured the idea.
